finmedia - int. symp. implementation of the european environmental directives, 28-29 september 2004,...

FINMEDIA - Int. Symp. Implementation of the European Environmental Directives, 28-29 September 2004, Bucharest – Romania Dr. C. Zanbak, TCMA, Turkey

AN EVALUATION OF

ENVIRONMENTAL SPENDING TRENDS IN EUROPE

Dr. Caner ZanbakEnvironmental Advisor, Turkish Chemical Manufacturers Association

International Symposium on IMPLEMENTATION OF THE EUROPEAN ENVIRONMENTAL DIRECTIVES:

PROBLEMS AND SOLUTIONS 28-29 September 2004

Athenee Palace Hilton Bucharest – ROMANIA Balkan Environmental Association

WITHIN THE CONTEXT OF SUSTAINABLE DEVELOPMENT


Meeting the Needs of Humans

1

Resource CONSERVATION

ENVIRONMENT 3

SHELTER and FOOD • Agriculture, • Animal Farming, • Fishing, • Forestry,• Mining, Petroleum, Gas,• • Water,• Air

(PROTECTION of Human Health and Environment)

a) Prevention of Wasteb) Pollution Prevention

BASIC PRINCIPLES :

SUSTAINABLE DEVELOPMENT

IMPROVEMENT in Quality of Life

2

DEVELOPMENT• Industrialization• Services .....• Education ....• Culture-Arts ....•


SUSTAINABILITY of DEVELOPMENT

A hard “BALANCING TASK”


Pollution

ECONOMIC DEVELOPMENT (per capita Income)

EKC Concepts

Environmental Quality - KUZNET’S CURVE Approach

300

200

150

100

0

50

250

0 10,000 15,000 20,000 25,000 30,0005,000

$, GDP per capita

Kg

SO

2pe

r ca

pita

Sulphur EmissionsPanayotou (1993)

300

200

150

100

0

50

250

300

200

150

100

0

50

250

0 10,000 15,000 20,000 25,000 30,0005,0000 10,000 15,000 20,000 25,000 30,0005,000 10,000 15,000 20,000 25,000 30,0005,000

$, GDP per capita

Kg

SO

2pe

r ca

pita

Sulphur EmissionsPanayotou (1993)

Environmental Kuznets Curve (EKC) - a hypothesized relationship between various indicators of:• environmental degradation and

• per capita income

“income inequality first rises and then falls as economic development proceeds”(Kuznets, S., 1955 )

Economic Growth without due attention to

Environmental Concerns

+

Chemicals Management,

CleanerTechnologies

Implementation ofEffective

Environmental Protection Measures

Current Model for EKC

EKC Hypothesis: “level of pollution first rises and then falls as economic development proceeds”

Developing

Countries


Developed

Countries

Developing Countries

DEVELOPED COUNTRIES

Wastewater Treatm

ent, Waste

Recovery/Disposal Facilities + In

frastru

cture

Services + Education + Contro

l and

Monitorin

g + Incentives

DEVELOPING COUNTRIES

ENVIRONMENTAL AWARENESS AND ENVIRONMENTAL EXPENDITURESEn

vir

on

men

tal

Aw

are

ness

1970 1975 1980 1985 1990 1995YEARS

2000

Cu

mu

lati

ve

En

vir

on

men

tal

Exp

en

dit

ure

s

1970 1975 1980 1985 1990 1995YEARS

2000


ENVIRONMENTAL SPENDING

The environmental quality, irrespective of development level of the countries,

is directly related to:

• integrated protection and resource conservation efforts of the communities

such efforts necessitate allocation of adequate funding for investment and operational

costs.

and


Data Source: EUROSTAT datahttp://europa.eu.int/comm/eurostat/newcronos/queen/index.html)

Annual Country Total Environmental Expenses1996-2000 period averages

$5,000 $10,000 $15,000 $20,000 $25,000 $30,000

per capita GDP

$0

$50

$100

$200

$300

$400

$0

Exp

en

dit

ure

, per

cap

ita $

Portugal Greece

Austria, UK, Germany,

France, Netherlands,

Finland

Spain

Slovenia

Slovakia

EstoniaTurkey

Poland

EU-15 Average


Annnual TOTAL Environmental Spending in Europe

$0

$50

$100

$150

$200

$250

$300

$350

$400

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000

per capita GDP

Exp

end

itu

re,

per

cap

ita

Data Source: EUROSTAT

PUBLIC

INDUSTRY

TOTAL

Portugal Greece

Germany, France, Netherlands, Austria,

Finland


Expenditures towards provision of:

• own environmental operational services• environmental services• operational goods from the market

(such as, wastewater treatment plant operation, waste disposal, air filters, analytical testing ..)

Environmental OPERATIONAL Expenditures

$0

$50

$100

$150

$200

$250

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000

per capita GDP

Exp

end

itu

re, p

er

cap

ita

PUBLIC

INDUSTRY

TOTAL

Annnual Environmental Spending in Europe

Environmental INVESTMENT Expenditures

Investments made towards purchasing of:

•end-of-pipe pollution prevention units

•process-integrated pollution reduction

(such as, wastewater treatment plant and production technology improvement)

$0

$20

$40

$60

$80

$100

$120

$140

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000

per capita GDP

Exp

end

itu

re,

pe

r ca

pit

a

PUBLIC

INDUSTRY

TOTAL



$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000

per capita GDP

$0

$10

$20

$30

$40

$50

$60

$70

Exp

en

dit

ure

, per

cap

ita

Waste

Other

PUBLIC Spending

$5,000 $10,000 $15,000 $20,000 $25,000 $30,000

per capita GDP

$0

$10

$20

$30

$40

$50

$60

$70

$0

Exp

en

dit

ure

, per

cap

ita

INDUSTRY Spending

Wastewater

Air

Annnual Environmental Spending in Europeby environmental Domains (Air, Waste, Wastewater, other)

Public spending shows a generally increasing trend both for investment and operational costsas the economic wealth increases(except for Air Domain)..

Industry’s spending increase rapidly after $10,000 per capita GDP level (except for Air Domain)


Waste

Wastewater

Other

Air


EU TOTAL Environmental Expenditures:0,8 - 1.2 % of the GNP (~70 – 80 billion € )

% 1.5 - 2.5 % of the Gross Added Value of the Industry

Environmental Expenditures of the EU Industry:0,3 - 0,6 % of the GNP (~25 – 30 billion € )

AB’de SANAYİNİN 1997 YILI ÇEVRE HARCAMALARI

Germany : 19,1 billion € France : 19,5 billion €

Greece : 680 €

Germany : 7,9 billion € France : 9,7 billion € Greece : 280 €

Main Environmental Spending Areas in the EU: Public : Water+Wastewater, Waste Industry : Water+Wastewater, Air, Waste

1999 ENVIRONMENTAL EXPENDITURES of the EU INDUSTRY

Reference: EUROSTAT


Third priority – Steady increase with GDP

Highest Priority - Steady increase with GDP

Lowest priority (likely, due to transfer of this aspect onto the industry).

Second Priority - Steady increase with GDP (likely, towards nature protection and enforcement)

Other protection of soil and GW,

noise, biodivers. radiation, gen. admin

Air

Wastewater

Waste

Op

era

tion

al Exp

en

ses

Other protection of soil and GW,

noise, biodivers. radiation, gen. admin

Air

Wastewater

Waste

Environmental Domains

Investm

en

t s

Public Sector

Highest priority – Steady increase with GDP

Third priority - Steady increase with GDP

Lowest priority – decreases with increasing per capita GDP

Second priority – Steady increase with GDP

Industry

Highest priority – Steady increase with GDP. Sharp decrease above $25,000 per capita GDP (likely due to overcapacity of existing facilities).

High priority – constant spending until $20,000 per capita GDP level; then increases steadily.

High priority up to $10,000 per capita GDP; steady after $15,000 per capita GDP.

Lowest priority - Steady increase with GDP (higher beyond $25,000 per capita GDP level (likely for nature protection / remediation).

Relatively low level of spending (likely, unavailability of off-site recover/disposal infrastructure). Sharp increase after $20,000 per capita GDP level.

Low spending until $10,000 per capita GDP; then, sharp increase (likely due to effective enforcement)

Highest priority – Sharp increase after $10,000 per capita GDP level and decrease above $25,000 per capita GDP level (likely, due to cleaner technologies).

Low spending until $10,000 per capita GDP; then, sharp increase (likely due to effective enforcement)

SPENDING TRENDS in EUROPEby Environmental Media

1 1

11

11

2

2

2

33

33

3

3

3


Environmental Spending

$30,000$0 $5,000 $10,000 $15,000 $20,000 $25,000

per capita GDP

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

Exp

en

dit

ure

, per

cap

ita $

$41

$38 $52

$84$132

$274

$368

$195

per capita, $


0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Ex

pe

nd

itu

re,

% o

f G

DP

1.23%1.10%

1.66%

0.98%0.88%0.84%

1.04%

2.56%

% of GDP

vs Share in GDPIn comparison to the Developed Countries,the burden of Environmental Protection

is much larger for the Developing Countries.


For the success in ENVIRONMENTAL PROTECTION efforts,

the Public Sector should do adequate spending

on Infrastructure and its Operational Expenditures, along with the required industry spending.

In other words,In cases where the PUBLIC SECTOR does not do adequate environmental

expenditures (sewer system, wastewater treatment, waste disposal facilities...)

Environmental protection efforts and investments done by the INDUSTRY ONLYWILL NOT BE

EFFECTIVE !!!!


• Conserve Resources• Don’t Pollute

If we want a Cleaner Environment:

Money required !!!

IN SUMMARY

• Educate people

• Manage waste

• Clean apparent contamination

To reach Cleaner Environmental conditions:

An old saying goes as:you GET what you

PAID FOR !!NO money spent on Environmental Protection, NO CLEAN ENVIRONMENT !!


Annual ENVIRONMENTAL SPENDING ESTIMATE

for a COUNTRY with 23 million population

Based on a mathematical model developed by C. ZanbakEUROSTAT base data 1996-2000

(REFERENCE : http://europa.eu.int/comm/eurostat/newcronos/queen/index.html)

$2,500 per capita GDP $5,000 per capita GDP $10,000 per capita GDP

Public Industry Public Industry Public Industry

x million $ x million $ x million $

Annual Investment Required

$160 $420 $320 $470 $660 $545

Annual Operating Expenditure

Required$115 $260 $245 $155 $535 $190

Annual Spending

Total $275 $680 $565 $625 $1,195 $735

TOTAL

$580

$375

$9551.66% of

GDP

TOTAL

$790

$400

$1,1901.04% of

GDP

TOTAL

$1,205

$725

$1,9300.84% of

GDP

GDP, perCapita

Env. Spending per capita

$1,500 $38$2,500 $42$5,000 $52

$10,000 $84

$0

$500

$1,000

$1,500

$2,000

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 Ex

pe

nd

itu

re,

per

cap

ita

per capita GDP

Public

Industry

Total


SUSTAINABILITY of DEVELOPMENT

A hard “BALANCING TASK”

•Education,

•Investment,

•Enforcement,

•Incentives,

• ......... Science


Turkish Chemical Manufacturers Association

Türkiye Kimya Sanayicileri Derneği

www.tksd.org.tr

Değirmen Sok. Şaşmaz Sit. No:19, Duranbey İşhanı K.3, D.9

Kozyatağı– 81090 Istanbul, Turkey

Tel : +90 216 416-7644, +90 216 416-94 39

Fax: +90 216 416-9218

e-mail : [email protected]

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